A survey of 300 manufacturing firms
located in the 10th Federal Reserve District, which includes Colorado, Kansas,
Nebraska, Oklahoma, Wyoming, western Missouri, and northern New Mexico, that
gives data about manufacturing trends. The survey is a good indicator of
current manufacturing conditions and near-term expectations. It is particularly
helpful in providing an early indication of price changes and ordering
patterns. Index values greater than zero generally suggest expansion, while
values less than zero indicate contraction.

This survey typically
has little impact in the financial markets, but it can be useful to either
confirm or discredit trends seen in the monthly ISM Index. The Kansas City Fed
Manufacturing Survey particularly has a stronger role when the Federal Reserve
Board is focusing on manufacturing as an important variable to gauge economic
strength.